Official website of Notaires de France

Investing in rental property


Parliament has introduced a succession of schemes that encourage private individuals to invest in the residential rental property market, which sometimes overlap.

Since 1 September 2014 the PINEL's scheme replaced the DUFLOT's scheme.


  • The PINEL device (allows its investors to benefit from a more generous tax reduction. However, the lessor is subject to more constraints) as of 01.09.2014

    • Housing concerned:
      - New housing, rehabilitated or acquired in the future completion between 1 January and 31 December 2015.
      - Naked rented accommodation in single main residence of the tenant and respected
      - Construction Standards BBC (Low Consumption Building)

    • Location of accommodation:
      - Metropolitan France, if the accommodation is located in an eligible investment zone (zone A, Aa, B1, B2)
      - Overseas (Guadeloupe, Guyana, Martinique, Reunion, Mayotte, Saint-Barthélemy, Saint-Martin, Saint Pierre and Miquelon, in New Caledonia, French Polynesia and the Wallis and Futuna Islands ). More on "PINEL law overseas"

    • Duration of the lease commitment:
      - 6 years
      - 9 years
      - 12 years

    • Tax reduction (capped at € 300,000 investment):
      - For a 6 year lease, the tax reduction is 12%.
      - For a period of 9 years of lease, the tax reduction is 18%.
      - For a 12-year lease, the tax reduction is 21%.

    • Land deficit attributable income (on an investment of 300,000 €):
      - Duration 6 years: € 6,000 or € 36,000 per year
      - Term of 9 years: 6. 000 € per year is 54. € 000
      - Duration 12 years: 6 000 € per year for 9 years and € 3,000 per year for 3 years is € 63,000.

    • Restrictions on tenants:
      - Possibility to rent the property to an up / down, under certain conditions, without interruption of the tax benefit.
      - The tenant is not part of the tax household of the owner.

    • Tenant Resource ceiling:
      - Consult the tenants resource ceilings (2014)

    • Rent ceiling (monthly in € per m²):
      - Zone A bis: 16.72
      - Zone A: 12.42
      - B1 Zone: 10
      - B2 Zone: 8.69.

  • Censi-Bouvard The device (Leaseback status, can allow you to benefit from a tax exemption scheme very advantageous) available until 31/12/2016

    • Housing concerned:
      - New housing, rehabilitated or acquired in the future completion.
      - Accommodations must be rented furnished and must be part of a serviced residence

    • Location of accommodation:
      - Metropolitan France

    • Duration of the lease commitment: 9 years

    • Tax reduction: the tax reduction is 11% (with 20% VAT reclaimable)

    • Conditions relating to the lessor: The lessor must make the commitment to provide housing for rent within a month depending on the nature of the acquisition, for a period of 9 years to the operator of the residence and not convey the property for the same period.

  • Lessor device Furnished No Business (Leaseback classic) and in professional furnished landlord (LMP)

    • Housing concerned:
      - Accommodations must be rented furnished with registration at the RCS for the status LMP.

    • You are then considered non-professional furnished property (Leaseback), if you receive less than € 23,000 / year of rental income
      This status allows you to deduct all of your land charges (property tax, maintenance costs ...) of your total income.
      In addition, under certain conditions, you may qualify for a tax reduction on the cost of your purchase through the declination of this device: the Censi-Bouvard law.
      More information about the non-professional furnished property (Leaseback).

    • You are then considered in professional furnished letting (LMP), if you receive more than 23,000 € / year of rental income
      As Leaseback status, it allows you to deduct from your total income all your land charges.
      Another advantage of the status LMP: your heirs receive lighter inheritance .
      Finally, if you decide to sell the leased property after 5 years and your rental income is less than 250,000 euros, you are totally exempt from capital gains.
      More information on the professional furnished letting (LMP).


  • The Malraux device (allows owners of old buildings to benefit from very attractive tax benefits) 

    • Housing concerned:
      - Dwellings in bare areas to protect the architectural heritage, urban and landscape (ZPPAUP) and in conservation areas and use main residence of the tenant.

    • Location of accommodation:
      - Metropolitan France and overseas

    • Length of contract: 9 years

    • tax reduction attributable directly (ceiling of € 100,000 / year works):
      - 30% of the restoration work for buildings sector saved
      - 22% of the work in protected areas of the architectural, urban and landscape (ZPPAUP).

    • Restrictions to the tenant: The tenant should not belong to the taxpayer of the lessor or be ascendant or descendant.


If you would like to have more information, do not hesitate to ask your own notaire who will be able to guide and advise you regarding the scheme that is most advantageous for you, in the light of your personal situation. You should also be aware that a lease drafted by a notaire offers security and the probative value and enforceability of an authentic instrument (which is of interest in the event of any problem with the tenant). Finally, your notaire will be able to handle the rental management of your assets during the term of the lease. Ask them about this.

See also


French property market report / N°31